China's IT Ministry Hit With Corruption Probe Amid US's Attempts To Restrict China's Tech Dominance

  • China probed the Minister of Industry and Information Technology Xiao Yaqing for "violation of discipline and law."
  • Xiao's ministry regulated the domestic heavy industry, automobile, telecom, and electronics sectors, overseeing companies from Huawei Technologies Co to Xiaomi Corp XIACYBloomberg reports.
  • He attracted attention following his exclusion from a list of central government officials slated to attend the upcoming Party Congress.
  • The scandal coincided with the U.S. exploring restrictions on shipments of chipmaking tools to China, including canvassing countries to discourage chipmaking ties with China and approval of its CHIPS Act.
  • The upcoming monthly Communist Party's Politburo meeting vowed to strive for the "best outcome" for economic growth this year.
  • The situation unfolded weeks before China's Presidential election, in which President Xi Jinping will likely secure a third term.
  • Jinping consolidated power over the past decade partly due to a sweeping corruption crackdown.
  • Before his political career, Xiao was president of Aluminum Corp of China when it bought a $14 billion stake in Rio Tinto Plc RIO with Alcoa Corp AA in 2008. 
  • Earlier this year, China's top economic official offered an unusually public show of support for digital platform companies ahead of the election.
  • Price Action: XIACY shares traded higher by 0.62% at $8.18 on the last check Thursday.
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